How To Draft A Restaurant Business Plan?

  • 27th Jul'21
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‘Planning is bringing the future into the present so that you can do something. 

Do you plan a restaurant business? 

Well, the food industry is always at the boom, while people love having a change of taste often. So, if you plan to explore the restaurant business, the first thing you need to have is a good restaurant business plan. 


What is a restaurant business plan? 

A restaurant business plan is a framework for running a restaurant business. It will guide you about launching the business and running it smoothly. It also includes basics like designing the menu to develop the theme of your restaurant. 


Why do you need a restaurant business plan?

Designing a business plan for your restaurant is the first step to putting your idea on paper and giving it a concrete structure. It gives you an insight into what your restaurant will look like and also involves its future prospects. These are the primary steps necessary for your business to be launched. The secondary aspect of drafting a business plan is that you can easily approach investors and financiers. This gives you an idea of how profitable your business can be. 

Now that we know the importance of a restaurant business plan let us understand how to draft one. 



Drafting a restaurant business plan

Drafting a restaurant business plan is a long and tedious process. It spans dozens of pages and requires a lot of brainstorming sessions. However, these basic elements make up a restaurant business plan. Let us understand them in detail. 


Executive summary

This is an overview of the restaurant business model. Though the executive summary does not give a detailed description of how the restaurant will run or will be successful. It also gives legitimacy to the restaurant idea and encourages investors to invest in this business. Some of the key points you should mention in the executive summary are 

  • Competitive advantages of the restaurant that will immediately click on the customer's minds 
  • When are the break-even point and sales forecasts for nearly 90 days? 



Here, the investors or readers are introduced to the core team or you can say the minds behind the concept of the restaurant. You have to mention the restaurant owners, other petty investors if any, franchise holders, and managers (if recruited). 


Business Overview 

Here comes the most important part of the restaurant business plan. The overview will include the concept of the restaurant, special peg if any. A business overview paints a picture of the restaurant in the minds of the investors and readers. Here are some pointers you should not miss while writing a business overview. 


Mission statement

The mission behind the launching of this restaurant should be very clear in your mind. This should include the main purpose of the existence of this business, and this should be catchy. 


Menu and Cuisine 

If you have any proper menu or any special dish, then it should be mentioned in the menu and cuisine. Other routine dishes should also be mentioned. 



You need to mention the services you are providing to the customers along with any complimentary services if any or paid services. 


Market Analysis

Before you launch your restaurant, you need to have a complete market study of the viability and acceptability of your restaurant. Study your customers, their living standards, their preferences, location, ambiance, you should be thoroughly updated with the behavior of your customers. 

For this, you need to work on the following pointers. 



Industry Overview 

This includes answers to many questions like why is this the right time to launch your restaurant, physical factors, and other factors supporting your claim. 


Location Overview 

This includes all the factors for the location you choose for your restaurant. How feasible is it for people to drive till here, if there are other restaurants near your restaurant, etc? 


Target Audience 

Before launching the restaurant, you should be clear on who your target audience is going to be. A lot of your restaurant's future depends on the target audience and how you cater to their needs. 


Marketing Strategies 

Marketing strategies work on highlights in which marketing channels will be used to appeal to the restaurant's target market. These include:

  • Branding 
  • Positioning your brand 
  • Social media marketing
  • Direct mailing to clients 
  • Community engagement strategies 
  • Video marketing 
  • Advertising Strategies (print, electronic, web)
  • Paid marketing 


Operating Model 

The restaurant business plan should include the entire service and hiring model of a restaurant. It gives an idea about the logistics of the restaurant and shows the investors that all the pieces are in place. 


Financial Overview 

Last, but the most important part of a restaurant business plan is giving financial projections. The investor ultimately wants to know whether the restaurant is going to be profitable or not. To draft financial projections, you need to add the following points: 


Opening Cost Overview 

This should provide a thorough explanation of how much will be the original cost of the restaurant. Your investors should know where their money is spent. An opening cost outline will help him. know about their finances. 



A tentative amount of how much revenue is expected to be generated in the first quarter of the restaurant is necessary for the financial projection. This makes the picture clear for the investor as to how and when they will start getting returns. 

A restaurant business plan gives you an insight into how your restaurant will be. This gives you scope to fill in the loopholes and make changes in your strategies on time. 


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*Note: The content published above was made in collaboration with our members.

About the author:

Prachi Chouksey (Editor), Super admin

An artist by heart and a writer by profession, Prachi is a vivacious reader.  She believes in hard work and her dedication has never let her down. She puts her heart and soul in everthing she does. Though life has not been a bed of roses for her, she affirms that the best way to live it is to maintain an equillibrium between the tunes of life.  

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